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GOOG vs. YHOO – Which Is a Better Bet In Your Search for Profits?

Yahoo stock doubled in 2013, but Google stock was no slouch either, jumping 50%

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The Verdict – GOOG Stock or YHOO Stock?

goog-stock-yhoo-stockJust as we picked GOOG over AMZN for 2014, we’re going for Google stock over Yahoo stock, too.

Google stock is not only cheaper, but the company has much stronger fundamentals. Furthermore, GOOG is a growth machine, especially on the top line where YHOO is still very much struggling.

YHOO stock is also likely to underperform vs. GOOG stock in 2014 because it had such a hot run this year. It’s very unusual for a stock or sector to follow up a year of triple-digit-percent returns with yet another one of screaming outperformance.

Indeed, usually there’s a hangover effect, where the top stocks and sectors of one year tend to underperform the next. Just look at what happened with real estate investment trusts (REITs) this year after a torrid 2012.

Lastly, when it comes to Yahoo stock, the Alibaba IPO and improved sentiment on thus-far successful turnaround efforts looks to have been baked in — and then some.

That doesn’t mean that YHOO stock can’t have another great year in 2014 … just that we expect GOOG stock to have an even better one.

As of this writing, Dan Burrows did not hold a position in any of the aforementioned securities.

Article printed from InvestorPlace Media,

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